- Emerson loaned Lake $29.375 for 180 days at a 8¼% simple interest rate. Thirty days later he sold the note to Palmer
at a 7^1 ⁄ 8 % simple discount rate. What simple interest rate did Emerson earn from this deal? - To be able to buy seed and fertilizer, a farmer borrowed $35,000 from a local bank, signing a 120-day note carrying a
simple interest rate of 7.5%. Thirty days before maturity, the bank sold the note to a private investor, with a discount rate
of 5.2%. Find (a) the maturity value of the note, (b) the price for which the note was sold, (c) the rate of simple interest
the bank earned, and (d) the rate of simple interest the private investor earned. - On May 6, 2007, Ronda bought a $10,000 T bill maturing on July 7, 2007, at a 6.53% simple discount rate. She sold
the note for $9,984.50 on June 19. What rate of simple interest did she earn? - Groucho loaned Chico $293,547.17 for 257 days at a 13.29% simple interest rate. Then, 118 days before the note
matured, he sold the note to Karl at an 11¾% simple discount rate. What simple interest rate did Chico actually pay? - On April 1, 2008, the Cattarauqua Ginseng Company borrowed $40,000 for 100 days at 11.63% simple interest. On
May 12, 2008, the note was sold at a simple discount rate of 24.39%. What simple interest rate did the original lender
earn? - To encourage The Superwonderful Stuff Company to expand its warehouse operation in the community, the Town of
Localville agreed to lend the company $2,500,000 for 3 years at a simple interest rate of 3.25%. One year later, facing
a budget crunch, the town was forced to sell the note to raise cash. Municipal County agreed to buy the note, with a
simple discount rate of 4.33%. Find both the amount of interest and the simple interest rate Localville earned. - What fi nancial impact does Localville’s sale of the note (from Exercise 29) have on the Superwonderful Stuff Company?
F. Additional Exercises- Sean borrowed $480 from Shawn for 300 days at a simple interest rate of 7%. Fifty days later, Shawn sold the note to
Siann at a discount rate of 11.5%, and 120 days after that, Siann sold the note to Shaun at a discount rate of 9.25%.
What simple interest rate did Sean actually pay? - AAA Enterprises made a loan to the BBB Company at a simple interest rate of 5%. A while later, AAA Enterprises sold
the note to CCC Inc. at a simple discount rate of 5%. Was the actual interest rate earned by AAA Enterprises less than
5%, equal to 5%, or more than 5%? - An investment manager purchases a $10,000 face value simple discount government bond. The simple discount rate
was 3.57%, and the remaining term of the note was 147 days; 93 days later, he sold the note at a simple discount rate
of 3.41%. Find the simple interest rate he actually earned. - On July 5, Crassus loaned Cesar $25,000 for 155 days at a simple interest rate of 10%. Crassus sold the note to
Pompey for $25,800. The simple discount rate used was 8%. On what date did Pompey buy the note?
Exercises 2.3 79Copyright © 2008, The McGraw-Hill Companies, Inc.